Duties of an Estate Trustee

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The role of the estate trustee is vital to the proper administration of an estate! The estate trustee ensures that the deceased’s wishes are fulfilled in winding up their estate. In today’s article, we briefly overview the duties of an estate trustee.

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The purpose of an estate trustee is to realize estate assets, settle liabilities and claims, and distribute the remaining assets (residue) according to the instructions set out in the Will (or as per intestacy rules in the case there is no Will).

The estate trustee’s authority to act (and its limitations) is taken from the Will (if there is one). However, some third parties may require an estate trustee to present a Certificate of Appoint of Estate Trustee to exercise their authority for certain actions. This certificate is obtained through probate. If there is no Will, the authority of an estate trustee is granted by the Court upon a successful probate application to appoint an estate trustee without a Will.

An estate trustee is a fiduciary. This means that the law imposes certain duties and obligations to ensure that the estate trustee acts diligently, and there is a high standard of care imposed on the role. Estate trustee can be held personally liable for breaching their fiduciary duty to the estate and its beneficiaries.

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RESPONSIBILITIES OF AN ESTATE TRUSTEE

FUNERAL ARRANGEMENTS

• The estate trustee is solely responsible for making funeral and burial arrangements.

ESTATE INVENTORY

• The estate trustee must make reasonable attempts to locate the last Will and testament of the deceased, and any codicils (amendments) that may have been made.
• They must locate all assets of the deceased and make an inventory.
• They must collect all important documents of the deceased in a safe place.
• They must apply for probate (Certificate of Appointment of Estate Trustee with or without a Will) when it is appropriate.

DUTY OF LOYALTY & DISCLOSURE

• The trustee must act in the best interest of the estate and the beneficiaries.
• They are responsible for disclosing and communicating with the beneficiaries regarding the administration of the estate.
• They must keep a detailed account of every decision and action taken during the administration process and provide this information to whoever is lawfully entitled such as beneficiaries.
• They must obtain releases from all residuary beneficiaries before any partial or final distribution or apply to pass accounts.

WINDING UP THE ESTATE – TAXES & DEBTS

• The trustee must distribute assets according to provisions in the deceased’s Will or according to the laws of intestacy if there is no will.
• They must inform creditors, wind up cards and accounts, and deal with any claims against the estate.
• They must determine taxes, debts, and other liabilities of the estate, ensuring that they are paid or satisfied.
• They must administer the estate in a timely manner, usually within a year of the deceased’s passing.

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This is only a general summary of the responsibilities and duties of an estate trustee. It is recommended to thoroughly review your responsibilities and duties as an estate trustee with a legal professional before making any decision.

The lawyers at Sweatman Law can help you navigate the estate administration process from start to finish. Contact us here to get started!

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DISCLAIMER: This blog post should not be interpreted as legal advice for your specific situation, concerns, or challenges. All estate plans are unique and should be reviewed by legal, financial, and health professionals, and tax accountants. Please be advised that the information on this website relates to laws specific to Ontario or Canadian federal law. Legal advice, procedure, and legislature may vary in different jurisdictions.